Appendix 2 to Fish Pool Rulebook

Transcription

1 Appendix 2 to Fish Pool Rulebook Calculation of settlement price (FPI) Table of contents: Table of contents:... 1 General provisions... 2 Purpose of Fish Pool Index TM (FPI)... 2 Access to Fish Pool Index... 2 Procedures for calculating FPI... 2 Price indices used for calculating FPI... 2 Weight distribution for calculating FPI... 3 Mark-ups and deductions for calculating FPI... 3 Exchange rates... 3 Lack of price information to calculate the FPI... 3 EU minimum import prices or other regulations... 4 Procedures for monitoring and changing FPI... 4 Operation of FPI Index Surveillance Board (ISB)... 4 Correction to the calculation of FPI... 4 Procedures for decision making by ISB... 4 Temporary correction of calculation of the FPI... 4 Permanent correction of the FPI... 4 Implementation of permanent corrections:... 5 Monthly settlement price for financial contracts... 5 Procedures for calculating the Monthly Settlement Price (MSP)... 5 Corrections to the Monthly Settlement Price (MSP)... 5 Appendix 2: Calculation of settlement price (FPI). Version 4.8, January 3 rd Page 1 of total 5.

2 General provisions The terms of this Appendix 2: Calculation of settlement price (FPI) will apply to all Products listed at Fish Pool. In the event of any conflict between the Rulebook and these terms, the Rulebook shall prevail. Purpose of Fish Pool Index TM (FPI) Fish Pool Index (FPI) is calculated every week and published at Fish Pool Website. FPI is calculated as a basket based on several price indices with the aim of reflecting the correct market price for each week. FPI aims at reflecting the market price for Superior gutted Salmon, iced and packed in boxes, reference FCA Oslo. To reflect one market price for Salmon, an average of Salmon size 3-6 kg is established. FPI has reference exporters selling price Oslo. Access to Fish Pool Index Fish Pool will provide the Clearinghouse and others with access to Fish Pool Index at least upon request. The access may be provided through licensing. Procedures for calculating FPI Price indices used for calculating FPI The following price indices are included in Fish Pool Index (FPI) with the following weighting: Index Description Weighting Nasdaq Salmon Index Export price, Statistics Norway Average of achieved sales prices for exporters (Superior salmon 3-6 kilo). Export price for fresh Salmon from Norway. Average of all sizes and qualities. Purchase price reported by large European purchasers of Norwegian Salmon (Superior salmon 3-6 kilo). 85 % 10 % 5 % All index elements are normally available latest Wednesday the week after observation. Fish Pool Index is calculated and made available soon thereafter. Appendix 2: Calculation of settlement price (FPI). Version 4.8, January 3 rd Page 2 of total 5.

3 Weight distribution for calculating FPI Some indices reflect the price of Salmon according to weights. To compute a market price, Fish Pool use the following formula: Index Price by sizes Weighting Nasdaq Salmon Index Yes SSB Export price No None 30 % SUP % SUP % SUP5-6 Yes 30 % SUP % SUP % SUP 5-6 Mark-ups and deductions for calculating FPI FPI aims at reflecting the market price for exporters selling price Oslo. To compare prices with different currencies and points of deliveries fixed mark-ups and deductions may be established. There are currently no mark-ups or deductions. Index Currency Mark-up Deduction Nasdaq Salmon Index NOK 0 0 SSB Export price NOK 0 0 NOK 0 0 Exchange rates To convert from NOK to EUR, Fish Pool uses the weekly average of daily exchange rates published from Central Bank of Norway. Lack of price information to calculate the FPI In the case of not available price information for an index used in calculating FPI, Fish Pool Index Surveillance Board (ISB) may evaluate, at its own discretion, how FPI shall be calculated. The weight of the other indices may be increased proportionally or the price of the missing index from previous week(s) can be used to reflect as good as possible the correct market price. A combination may be chosen. If the lack of an index is expected to be long term, or an index has been lacking 3 weeks in a row, ISB must inform Fish Pool board of directors and the board of directors must make a formal decision. Appendix 2: Calculation of settlement price (FPI). Version 4.8, January 3 rd Page 3 of total 5.

4 EU minimum import prices or other regulations Version 4.1 of this appendix contains procedures used for EU minimum import prices illustrating possible procedures to be followed in case of regulations of the market prices in specific markets. Procedures for monitoring and changing FPI Operation of FPI Index Surveillance Board (ISB) Fish Pool is responsible for monitoring, supervising and changing FPI. To secure the independent operation and trustworthiness of FPI, Fish Pool board of directors has appointed an independent board: Fish Pool Index Surveillance Board (ISB). ISB shall be independent of Fish Pool operations. Fish Pool board of directors has appointed Oslo Børs as ISB. Fish Pool reports to ISB on the development of FPI every quarter. ISB is responsible for monitoring FPI, has the authority to implement procedures and may decide temporary changes and propose permanent changes to the calculation of FPI to ensure that FPI correctly reflects market prices. Correction to the calculation of FPI ISB is authorised to adjust the calculation of FPI temporarily or permanently, according to the following procedures: 1. ISB monitors FPI. ISB may decide to propose permanent corrections to this appendix to Fish Pool board of directors. 2. ISB may decide temporarily up to 6 months to adjust the following factors used for calculation of the FPI without the approval by Fish Pool board of directors. a. The mark-up/deductions b. The weightings c. Introduce a new index element or replace an existing index element with a new index element 3. ISB may engage independent experts to conduct analysis of market prices as basis for decision making. The aim of the above procedures is to better reflect the market prices and avoid possible manipulation of the FPI. Procedures for decision making by ISB Temporary correction of calculation of the FPI ISB may decide to correct temporarily the calculation of FPI. This may be done for future week(s), and the weeks of the last month with executed settlement. Permanent correction of the FPI ISB shall do its outmost to supervise FPI and secure that the settlement price reflects the market prices for Salmon as defined in this appendix. At its own discretion, the ISB may propose to change permanently: Appendix 2: Calculation of settlement price (FPI). Version 4.8, January 3 rd Page 4 of total 5.

5 Weighting of the price information used to calculate the FPI, The indexes in the basket, by replacing existing or introducing new indexes The weight distribution used for calculation of the indexes, The deductions/mark-ups for comparing to Oslo prices, The rules for currency conversion from EUR to NOK, or Other rules necessary for reflecting the correct market price for Salmon. Implementation of permanent corrections: When permanent changes to FPI are evaluated, the effect of the changes during the past 52 weeks must be calculated. The average absolute weekly difference between before and after the potential change must be calculated. The below table determines the notice time for Months with already executed Trades: Average absolute weekly change: Less than 1% Between 1% and 2% More than 2% Min notice time*: 1 months 6 months 12 months *A material change in one or more indices or an evaluation by ISB that an earlier correction is important reduces or removes the notice time, as decided by ISB. The notice time starts the day the permanent correction decided by Fish Pool board of directors was published on Fish Pool Website, to the day of implementation. A permanent correction of FPI shall be implemented from the first week in a quarter. Monthly settlement price for financial contracts Procedures for calculating the Monthly Settlement Price (MSP) Each Product available for Trading at Fish Pool shall clearly indicate which weeks are included in the Product. The Monthly Settlement Price is calculated as the simple average of the weekly prices (not volume weighted) of the weeks included in the Month. The Monthly Settlement Price for Fish Pools contracts will be published by the 15 th (or the next Trading day following the 15 th ) in the following month. All index elements and currency rates will be registered with 2 decimals as basis for calculating the weekly Fish Pool Index. Corrections to the Monthly Settlement Price (MSP) In the event of later corrections to the indices used for calculating FPI or in the event of calculation errors or other errors in computing the MSP, the MSP may be corrected according to the following rules: Fish Pool may, in the event that MSP was erroneous in a material manner decide to correct MSP. In respect of Cleared Trades the Clearinghouse may perform a corrective settlement based on the updated MSP according to the rulebook of the Clearinghouse. Appendix 2: Calculation of settlement price (FPI). Version 4.8, January 3 rd Page 5 of total 5.